TaxTMI 
TaxTMI 
2020 (11) TMI 155
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....t petitions, the aforesaid orders are challenged on the same grounds; therefore, these writ petitions are disposed of by this common order. 2. Originally, monthly sales tax returns were to be filed by all dealers on or before the 20th of the succeeding calendar month along with the tax due and payable as per the self-assessment of the dealer. By an amendment to Rule 18(2) of the Tamil Nadu General Sales Tax Rules (the TNGST Rules), the date of filing returns was advanced for dealers with a taxable turnover of Rs. 200 crore or more in the previous financial year. As a result, such dealers were directed to file their monthly returns on or before the 12th of the succeeding calendar month. The Petitioner admittedly failed to submit the returns for the relevant periods on or before the 12th of the succeeding calendar month. However, the returns for the relevant period were filed on or before the 20th of the succeeding calendar month. 3. By the impugned order of the third Respondent dated 09.08.2005, the third Respondent held that the Petitioner is liable to pay interest under Section 24(3) of the TNGST Act or under Section 24(3) read with Section 9(2 A) of the CST Act, as the case....
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....such returns. As a matter of fact, in these cases, the taxes that were due and payable, as per the return, were always paid along with the returns. In this factual situation, he submits that the Petitioner/dealer is not liable to pay interest as per Section 24(3) read with Section 24(1) and Section 13(2) of the TNGST Act. 7. On a demurrer, Mr.Prasad submits that Section 24(3-A) and not Section 24(3) would be attracted in the present cases. He points out that Section 24(3-A) was introduced by way of an amendment in the year 1999. As per Section 24(3-A), in cases where a dealer submits the prescribed return within 10 days after the expiry of the prescribed period, he shall also pay in addition to the amount of tax due, as per his return, interest at 2% of the tax payable for every month or part thereof. In view of the fact that the Petitioner submitted the returns and paid the taxes within 10 days from the 12th of the succeeding calendar month [prescribed period] by always doing so before the 20th, he submitted that the Petitioner's case would fall within the scope of Section 24(3-A). 8. In support of the contention that Section 24(3) of the TNGST Act does not apply, Mr.....
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....month and not from the actual date of filing of the returns. In any event, he submitted that Section 24(3-A) makes it very clear that interest is payable on belated payment of tax even if the return is filed within 10 days from the prescribed date,namely, the 12th of the relevant succeeding month. 11. As regards the judgment in EID Parry, he submits that the said judgment turned on the fact that the dealer therein was dealing in sugar, which was a controlled commodity and price fixation was a complicated exercise. In those facts and circumstances, the Hon'ble Supreme Court concluded that the turnover could not be determined at the time of filing of the return as the price of sugar was fixed subsequently as per Section 5-A of the Sugarcane Order and, therefore, the dealer could not be penalized for filing returns on the basis of a provisional turnover. 12. We considered the submissions of the learned counsel for the respective parties and examined the materials placed on record. 13. Rule 18(2) of the TNGST Rules prescribes the time limit for a dealer to file a return. The said Rule 18(2) is, inter alia, as under: "R.18(2) Subject to the provisions of sub-rule (....
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....y determined under sub-section (1), a dealer may, at his option, pay tax in advance during the year on the basis of his actual turnover for each month or for such other periods as may be prescribed. For this purpose, he may be required to furnish returns showing his actual turnover for each month or other periods as may be prescribed and to pay tax on the basis of such returns. The tax under this sub-section shall become due without any notice of demand to the dealer on the date of receipt of the return or on the last due date as prescribed whichever is later."(emphasis added). 15. On examining Section 24(3), we find that it provides for the payment of interest on amounts remaining unpaid after the date specified for payment as per Section 24(1). Therefore, Section 24(1) should be examined. Section 24(1) consists of two limbs. The first limb is in the nature of an exception and deals with cases that are within the scope of Section 13(2). The second limb deals with cases where an assessment is carried out by the tax authorities. In such cases, Section 24(1) provides that the tax would become payable on the date specified in the notice of assessment provided that such date i....
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....eturn is filed without enclosing proof of payment of tax. More importantly, in paragraph 42 of the said judgment, another Division Bench judgment in Ceat Limited v. State of Tamil Nadu 1995 (96) STC 26 (Ceat Limited) was relied upon and extracted as under: "42. Another Division Bench of this Court, while construing Section 13(2) and Rule 18 has held as follows in the case of CEAT LTD. VS. STATE OF TAMIL NADU AND ANOTHER 1995 (96) STC 26. " It is clear from sub-rule (2) of rule 18 that in the case of self-assessment, the return for each month shall have to be submitted so as to reach the authority on or before the 20th of the succeeding month and along with the return, the tax-paid receipt has also to be enclosed. Thus, it is open to the dealer to pay the tax on any date from 1st of the succeeding month till the 20th and file the return either on the 20th of the succeeding month or on any date before that date, that is to say, from the 1st to 20th of the succeeding month. What is necessary is that along with the return, the proof of payment of the tax as specified in sub-rule (1) of rule 55, has also to be enclosed. As such, the last date prescribed for payment of ....
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....the prescribed period, he shall also pay, in addition to the amount of tax due as per his return, interest at two per cent of the tax payable for every month or part thereof." As per this provision, a dealer who files the prescribed return, after the expiry of the prescribed period, but within 10 days from the expiry thereof is required to pay interest at 2% of the tax payable for every month or part thereof. It is abundantly clear that the liability to pay interest under Section 24(3-A) is triggered if the return is not filed on the prescribed date. However, this provision applies only if the return is filed belatedly but within 10 days from the expiry of the prescribed period. The prescribed period in these cases is the 12th of the succeeding calendar month and the learned Additional Government Pleader does not dispute the fact that the returns were filed on or before the 20th of the succeeding calendar month, which is within 10 days from the prescribed last date. Therefore, Section 24(3-A) undoubtedly applies to these cases. On account of the above position, we conclude that the apposite provision, in this case, is Section 24(3-A) rather than Section 24(3). 18. Once Sec....